Tata Steel has sold its UK plant to London-based Greybull Capital

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Tata Steel has sold its UK plant to London-based Greybull Capital
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As per reports, Tata Steel has confirmed the sale of its Scunthorpe-based steel plant to investment firm Greybull Capital. The deal involves an investment package of 400 million pounds, the reports added.

It was in December last year that Tata Steel had signed a memorandum of Intent with Greybull Capital so that it could enter exclusive negotiations for the potential sale of its long products Europe business. Prior to this, it had signed a memorandum of understanding with the Klesch Group, which couldn’t be sustained.

Along with the steel plant, the deal also includes mills in Teesside and northern France, an engineering workshop in Workington, a design consultancy in York, and associated distribution facilities.

Talking of the investment firm Greybull Capital, it is "a family office which makes long-term investments in private companies" based in London, and is run by financiers Marc and Nathaniel Meyohas and Richard Perlhagen.

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Ever since Tata Steel announced in March this year that it would have to sell its UK steel business because of poor performance, the events have unfolded rather rapidly. The reasons behind the downfall are said to be poor demand and cheap Chinese imports.

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